What does the United Nations Principles for Responsible Investment (UN PRI) promote?

The United Nations Principles for Responsible Investment (UN PRI) promotes the incorporation of Environmental, Social, and Governance (ESG) factors into investment decisions. This principle encourages institutional investors to understand the implications of sustainability on their portfolios and to consider these factors as part of their overall investment strategies. By integrating ESG aspects, investors can better assess risks and opportunities, aligning their investment practices with broader societal goals and sustainability. This focus on responsible investment aims to create a more sustainable financial system, recognizing that ESG factors can impact long-term performance and risk management.

The essence of the UN PRI is about enhancing responsible investment practices, rather than ignoring ESG considerations or prioritizing short-term gains without regard for social or environmental impacts. Thus, the emphasis on incorporating ESG factors reflects a holistic approach to investing that aligns financial objectives with ethical and sustainable practices.